April 26, 2011
The Insolvency Services has raised its fees for individuals entering into bankruptcy or filing a bankruptcy petition and for companies entering into liquidation. The changes will take effect as from 1 June and will be approximately £160 higher for company voluntary liquidations and £75 to £100 higher for individual bankruptcies. Bringing a bankruptcy petition entails certain fees that must be paid including the court fee, a deposit for administering the bankruptcy and possibly also interpreter’s fees. It can cost in the region of £700 to be made bankrupt at present. Recent concerns have been raised over insolvency practitioners’ practices of charging unsecured creditors higher fees than banks and larger creditors to recover their assets. The Insolvency Service is currently consulting on various proposals to amend the regime for unsecured creditors which could include amending the Regulations and laws governing administration and liquidation and setting up an independent complaints body. Anyone facing bankruptcy or corporate insolvency should seek the advice of a solicitor.